CIPMA Connection

May | 2020

MESSAGE FROM THE PRESIDENT JENNIFER STEWART

UPCOMING EVENTS ADVOCACY CORNER NEWS UPDATES

FULL MEMBERS

ASSOCIATE MEMBERS

CONNECTION CONTENTS

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| PRESIDENTS CORNER

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| UPCOMING EVENTS

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| ADVOCACY CORNER

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| NEWS UPDATES

MISSION CIPMA’s mission is to ensure the sustainability and growth of a healthy and viable independent fuel marketing and distribution sector at both the wholesale and retail levels in Canada. Our specific goals include: Ensuring that independent fuel marketers thrive and have the opportunity to earn a fair and reasonable return that is proportionate to their business risk and capital investment, and ensuring that Canadian consumers and independent fuel marketers have access to a competitively priced and readily available supply of fuel products in all regions of the country.

MESSAGE FROM THE PRESIDENT JENNIFER STEWART | PRESIDENT & CEO

Dear CIPMA Members and Associate Members, It’s hard to believe that the end of the month is here already. For many, it has been a whirlwind since the start of the pandemic. Businesses are iterating and finding ways to remain nimble. Our sector is grappling with reduced volumes and customers, as Canadians are told to self-isolate and most are working from home.

As the economy looks at re-opening in phases, CIPMA will be carefully tracking our progress and communicating regularly with our Members and industry at large.

We are also changing how we communicate with our Members and will be adding a podcast starting this summer featuring expert guests on the sector and will be organizing a virtual summit in the fall of 2020 – stay tuned. Our goal with this summit is not to add to the many virtual meetings and Zoom calls, but to truly bring in world renowned experts in the sector to provide thoughtful analysis and research that will help your businesses as we move past the first wave of COVID-19.

Our team is also actively engaged with governments of all levels, advocating for our sector and making sure our recovery is thoughtful and top of mind for decision-makers.

As always if you have any concerns or questions, please don’t hesitate to contact me directly.

Sincerely,

Jennifer Stewart President and CEO Canadian Independent Petroleum Marketers Association

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UPCOMING EVENTS CIPMA CONNECTION | 2020 EVENTS

CANADIAN FUEL MARKETING CONFERENCE April 19 – 21, 2021 Fairmont The Queen Elizabeth Hotel, Montreal

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ADVOCACY CORNER The Advocacy Corner will be featured in the newsletter on a bi-monthly basis. We will continue to monitor and track all policy related issues that matter to you, our Members, in the lead up to and post the federal election.

Kindly find below an update on our advocacy efforts: •

CIPMA will be partaking in the Fuel Price Transparency Act Industry Consultation recently announced. Deadline for submissions is June 12th. Our hope is to have our submission prepared by mid next week for circulation amongst the group.

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CIPMA has engaged Natural Resources Canada/ Environment and Climate Change Canada to request that all regulatory measures / initiatives be put on hold for the time being. We have learned that the government will delay the publication of the proposed Clean Fuel Standard regulations for the liquids class in Canada

Gazette, Part I. They now plan to publish proposed regulations for the liquids class in fall 2020, with final regulations in late 2021 and coming into forced in mid-2022. Regulations for the gaseous and solids classes will follow about one year later.

• Several CFA Technical Committee meetings are scheduled for June, of which CIPMA

will partake.

• Jennifer Stewart had two meetings with the Federal Government regarding a three-month deferral of the Federal Excise Tax. This was in conjunction with CFA. We continue to engage with government and CRA on this file.

• CIPMA has engaged all Provincial Regulators in the Atlantic provinces to request an increase in the margin to provide some temporary financial relief for retailers in regulated markets. To further move this file along, CIPMA is working with the Atlantic Convenience Stores Association, the Convenience Industry Council of Canada and the Retail Gasoline Dealers Association.

• Jennifer Stewart had a one-on-one meeting with the Federal Labour Minister, to discuss industry issues and ensure retailers remain top of mind for decision-makers in these challenging times.

• CIPMA has confirmed that a reduction in gasoline commission sales can be included in eligibility calculations for the Canada Emergency Wage Subsidy.

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NEWS UPDATES Please note that all orange text in the following section is hyperlinked. If viewing electronically, you can click to read full articles.

GLOBAL COVID-19 IS AFFECTING EMISSIONS ON A PLANETARY SCALE As many as 2.6 billion metric tons of carbon dioxide emissions–about 8% of what was the estimated total for the year–will never see the light of day, according to estimates by the International Energy Agency. Pick any world-shaking event from the 20th century–none has produced a bigger drop in man-made pollution.

CRISIS COULD TIGHTEN MATERIAL SUPPLY FOR EV BATTERIES AND CLEAN ENERGY, IEA WARNS The global coronavirus pandemic could present a major issue for electric cars and clean energy by restricting supplies of materials needed for batteries, solar panels, and wind turbines, the International Energy Agency (IEA) warned.

4 CANADIAN ENERGY FIRMS BLACKLISTED BY WORLD’S LARGEST WEALTH FUND OVER HIGH EMISSIONS The Norwegian central bank excluded four Canadian oil and gas companies from its $1-trillion wealth fund, the world’s largest, for producing too much greenhouse gas emissions, its first use of carbon emissions as a criterion to blacklist firms.

UNITED STATES KEYSTONE XL APPROVALS WILL BE RIPPED UP, VOWS U.S. PRESIDENTIAL CANDIDATE JOE BIDEN Joe Biden’s campaign lobbed a spanner into Alberta’s post-pandemic economic recovery strategy Monday with a promise to rip up U.S. President Donald Trump’s approvals for the Keystone XL pipeline if the former vice-president succeeds in taking over the White House next year.

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CORONAVIRUS CRISIS HITS SOLAR AND WIND ENERGY INDUSTRY

ENBRIDGE CUTS SPENDING AFTER FALLING OIL DEMAND HITS CRUDE FLOWS

Swinerton Renewable Energy had everything it needed to build a promising new solar farm in Texas.

It lined up more than 2,000 acres for the $109 million project estimated to generate 400 jobs while under construction. But the coronavirus pandemic put everything on hold. The coronavirus crisis is not only battering the oil and gas industry. It’s drying up capital and disrupting supply chains for businesses trying to move the country toward cleaner sources of energy.

Enbridge Inc., North America’s largest pipeline operator, is cutting jobs, lowering executive pay, and deferring some capital spending as measures to fight the COVID-19 virus reduce oil flows on its system and slow down construction. About $1 billion of capital spending will be delayed as distancing measures change its construction schedules.

NATIONAL SAUDI WEALTH FUND BUILDS STAKES IN CANADIAN OIL SANDS GIANTS Saudi Arabia’s sovereign wealth fund built stakes in two major Canadian oil sands players during the energy market rout. The Public Investment Fund amassed shares in Calgary-based Canadian Natural Resources Ltd. and Suncor Energy Inc., with a 2.6% and 2% stake in the companies, respectively.

CANADA'S OIL PRODUCERS NEED CLIMATE TARGETS TO DRAW INVESTMENT, TRUDEAU SAYS Canada’s oil producers need to set clear targets to fight climate change to continue to attract global capital, Canadian Prime Minister Justin Trudeau said on May 12 as the country’s carbon-intensive oil sands industry faces heightened environmental scrutiny from investors.

CANADA TO BE LENDER OF LAST RESORT FOR BIG COMPANIES LIKE AIRLINES AND OIL PRODUCERS Canada said it would be the lender of last resort for large employers that need help getting through the economic downturn caused by the novel coronavirus, including those in the hard-hit airline and energy sectors.

IMPERIAL OIL TO GIVE AWAY $2 MILLION IN FREE GAS TO CANADA’S FRONTLINE HEALTHCARE WORKERS Imperial Oil Ltd. is handing out 80,000 $25 digital vouchers for gas to nurses, paramedics, and doctors providing critical care across Canada. “We owe so much gratitude to those on the front lines who are working long hours helping those in need,” said Imperial chief executive Brad Corson.

PARKLAND COMPLETES CONOMART SUPER STORES ACQUISITION Parkland Fuel Corporation (Parkland) announced that through its wholly-owned U.S. subsidiaries (collectively, Parkland USA), it completed the asset agreement to acquire ConoMart Super Stores, first announced in March.

MAY AND BLANCHET DECLARE THE OILPATCH 'DEAD,' WARN OTTAWA AGAINST FINANCIAL SUPPORTS Canada's oil and gas sector is on the ropes as COVID-19 crushes demand and a global price war pushes domestic companies to the brink of bankruptcy — but two opposition leaders say Ottawa should simply let part of the industry wither and die.

LNG DEVELOPMENT A LIFELINE FOR CANADA’S OIL AND GAS SUPPLY CHAIN: NEW REPORT The development of a liquefied natural gas (LNG) export industry promises to reverse the growing trend of decreased oil and gas exploration and development spending in Canada, ceating opportunities across the supply chain to put companies back to work or expand operations, finds a newly released report, LNG: Canada’s Supply Chain Opportunities.

WESTERN REGION ALBERTA STRENGTHENS METHANE GAS REGULATIONS, CLEARING WAY FOR DEAL WITH OTTAWA Alberta is tightening its methane regulations, bringing it closer to controlling emissions from greenhouse gases, contingent on a review from Ottawa to ensure they meet federally mandated targets.

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CONSTRUCTION OF EXPANDED TRANS MOUNTAIN PIPELINE TO BEGIN SOON IN B.C. Construction will soon ramp up on the expansion of the Trans Mountain oil export pipeline, including the installation of pipe in British Columbia where opposition to the project has been loudest.

COVID-19: OUTBREAK DECLARED AT HORIZON OIL SANDS WORK CAMP Chief medical officer of health Dr. Deena Hinshaw said during her daily update that five cases have been linked to Alberta’s Horizon Oil Sands mine camp, located north of Fort McKay and operated by Canadian Natural Resources Ltd. FIRST NATIONS WORRIED BY SUSPENSION OF OIL SANDS ENVIRONMENTAL MONITORING The leader of a First Nation surrounded by oil sands development is frustrated by the Alberta Energy Regulator’s decision to suspend a wide array of environmental reporting requirements.

KEARL LAKE CORONAVIRUS OUTBREAK NOW LINKED TO OVER 100 CASES IN FOUR PROVINCES An outbreak at a Northern Alberta oil sands site is now linked to more than 100 COVID-19 cases across four provinces, including a remote Dene village in Northern Saskatchewan, further raising fears that the disease could spread like wildfire through work camps that house thousands of oil and gas workers.

GWYN MORGAN: ALBERTA'S TRAGIC NEVERENDING NIGHTMARE WILL ONLY GET WORSE IF OTTAWA DOESN'T ACT Gwyn Morgan is a retired business leader who has been a director of five global corporations. In this article, Mr. Morgan discusses the critical situation in which most oil producers find themselves in and the federal government’s support that has been offered.

ENBRIDGE CONVERTS IDLED MAINLINE EXPORT SYSTEM PIPELINE FOR CRUDE STORAGE

WESTERN CANADA: B.C., OTTAWA AGREE ON PROCESS THAT WOULD GIVE POWER TO WET’SUWET’EN HEREDITARY LEADERS The governments in Ottawa and British Columbia came to an agreement with the chiefs of the Wet’suwet’en and the protests came to an end but the details of that agreement were never made public. The memorandum of understanding was one aimed at offering clarity around the rights and title of the Wet’suwet’en. The hereditary chiefs announced last week that it had been approved and a signing ceremony is planned for May 14.

ONTARIO / QUÉBEC REGION COVID-19 PROMPTS COUCHE-TARD TO DROP $5.6 BILLION BID FOR CALTEX Alimentation Couche-Tard Inc. has shelved its $5.6 billion bid to acquire Caltex, the largest chain of service stations and convenience stores in Australia.

ATLANTIC REGION IRVING OIL FINALLY GETS APPROVAL TO SOURCE ALBERTA OIL — BUT THROUGH THE PANAMA CANAL After failing to secure Western Canadian oil via the scrapped West-to-East Energy East pipeline back in 2017, Irving Oil Ltd.’s finally been able to get federal approval for a new route to connect the oilsands to its refinery on the East Coast.

SEAMUS O'REGAN SAYS 'EXPLORATION IS KEY' TO FEDERAL HELP FOR N.L. OFFSHORE OIL INDUSTRY The federal natural resources minister says Ottawa is focusing on incentives based on exploration to help the Newfoundland offshore oil industry as it deals with the crippling fallout of COVID-19.

Analysts say an Enbridge Inc. plan to use an idled leg of its Mainline pipeline system to store surplus Western Canadian oil will help offset lower volumes on the system as U.S. refineries buy less oil to match lower demand.

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Wewant wanttotoshare sharethe thesuccesses successesofofour ourmembers.

Members.

We members. youwant wanttotofeature featureyour yourcompany’s company's IfIfyou company’srecent recent achievements,updates, updates,ororsimply simplywant wanttotobe be achievements, featured,please pleasereach reachout JenniferStewart Stewartatat featured, outtotoJennifer jstewart@cipma.org jstewart@cipma.org

Jennifer Stewart, President and CEO jstewart@cipma.org | Cell: 613.915.5699

Rita Molinari, CMP, Operations Manager rmolinari@cipma.org | Cell: 416.358.5207

MAILING ADDRESS | 3-1750 The Queensway, Suite 115 - Toronto, ON., M9C 5H5

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